Since we returned from vacation, I wrote 3 Daily’s.
The first was about the Modern Economic Family and how it opened its loving arms to the bulls.
I was especially interested in small cap companies or ().
I wrote: “Starting with IWM or Granddad Russell 2000, Monday started with a gap above the 50-DMA (blue).
We will be attentive to confirm a phase change. Additionally, the monthly chart shows IWM back above the 80-month MA (green). Resistance in the 191 area is available if IWM remains above 174”.
Phase change-YES
Holding 174-YES
Still above the 80-month MA-YES
Is 191 available if you continue holding it? YEAH.
Next, I wrote a Daily about soybeans as the next potential parabolic runner.
“Meanwhile, the Teucrium Soybean Fund (NYSE:) saw a huge influx of investor money.
The monthly chart presented shows prices hovering around all-time highs.
In 2012 the maximum was 28.88. In July this year, SOYB reached a new high of 29.43.
The sideways consolidation on this monthly chart suggests that a move towards 34-35 is possible.”
The daily chart is in a bullish phase, yes.
The futures contract here, shown via the rolling contract and not the January 2024 contract, looks different.
The continuous contract is below the 23-month MA, while the ETF futures contract is above the 23-month MA.
Lateral consolidation-YES
Ready to run? -NOT YET.
But watch for a move above 1400 in the January 2024 contract as a good start, as long as it contains 1250.
This week’s next diary was titled: The New Gold: Buy When There’s Blood on the Street
The thesis was that oil is a buy just when everyone turned bearish. Like “you buy it when it looks horrible, sell it when it looks strong.”
The futures contract (December) shows that $72 held on Friday with a move to almost $76.
Was it a bloody purchase in the streets? YEAH
Do we have a support level now?- YES
Next week, let’s hope oil breaks above $76 to continue the rally.
ETF Overview
- S&P 500 (SPY) 450 deleted see 465 Low 450 435 support
- Russell 2000 (IWM) 181 resistance 174 support
- Dow Jones (DIA) 360 resistance 346 support
- Nasdaq (QQQ) 388 must clear and 370 must hold
- Regional banks (KRE) 45 great resistance
- Semiconductors (SMH) 160-161 pivot bracket
- Transportation (IYT) 235 support
- Biotechnology (IBB) 120 fundamental
- Retail Trading (XRT) 65 resistance and 60 fundamental support
